profit sharing

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profit sharing,

n a mechanism for funding a retirement plan for employees or members of a professional association. Members are eligible for a percentage of the net income based on predetermined formulae. Such plans, properly executed, are legal and ethical and are to be differentiated from fee splitting, which is illegal and unethical, in which a referring professional shares in the fee-for-service income of another professional.

profit

the amount by which income exceeds expenditure.

profit sharing
profit sharing between a professional and a lay person is illegal in most countries because it is considered to be improper for a nonveterinarian to have any authority over the quality and style of the work of a professional person.
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In addition, a profit-sharing plan, which only permits distribution of amounts held in a separate MRA for reimbursement of substantiated medical care expenses (as described in the facts above) may fail to satisfy various other Sec.
You designate a fixed amount for the money purchase portion, then add to the profit-sharing portion as your business grows, for a combined total of up to 25% of your income
The drawback is that inefficient or unproductive employees might be encouraged to stay at the company to collect their mounting vested interest in the profit-sharing fund.
Instead of deferring the vesting of employees' accounts until distribution, which would also defer taxation, the company pays its annual profit-sharing bonus partly in shares and partly in cash.
The arguments both for and against ESOPs and profit-sharing plans are based on the assumption that these pay devices actually provide positive feedback from company performance to nonmanagerial pay.
For 2007, there were 5,439 eligible employees in Baldor's profit-sharing plan, and the average contribution was 3.
Discussions over a new profit-sharing formula are expected to start before the end of 2004 so it can be implemented in early 2005.
1 million shares will go to employees who own stock in the company through a profit-sharing plan.
For the survey Retirement Benefits in the 1990s, sponsored by KPMG Peat Marwick, human resources directors at 1,183 organizations answered questions about their employer's defined benefit, 401(k), 403(b), profit-sharing and other plans.
Another example of how we close the circle with quality at Alcoa is the profit-sharing plan we instituted in cooperation with members of our three major unions - the steel workers, aluminum workers, and auto workers.
A BLS survey shows that profit-sharing plans today possess a variety of features; rules for determining employer contributions, allocations among employees, and employees' access to funds differ widely among plans
The latter is taken to be lower in the profit-sharing economy than the wage level in the corresponding wage economy.